Friday, February 27, 2009

Being charitable

Obama wants to eliminate a tax deduction on charitable donations for people making $250,000 plus.
Still, the charitable giving deduction reduction, which would limit deductions for couples making $250,000 or individuals making $200,000, provoked the most heat Thursday. Mr. Obama is counting on that provision to raise $179.8 billion over 10 years.

"Some of the reforms and offsets contained or referenced in the budget, such as the limitation on itemized deductions, raise concerns and will require more study as we determine the best policies for getting America back on track," said Finance Committee Chairman Max Baucus, Montana Democrat.

Roberton Williams, senior fellow at the Tax Policy Center, said it's impossible to calculate the exact effects of all the tax changes, but said the overall result is clear - less philanthropic giving.

"This will lead people to give less to charities if they behave the way they've behaved in the past," he said. "We've already seen a drop in giving as a result of the economic collapse. On top of that, this will just reduce the amount of giving."

Asked about that, Office of Management and Budget Director Peter Orszag said Mr. Obama took care of that by giving charities government money to make up part of the difference.


First off, don't we already know that rich, greedy, people never give to charity?

None the less, let me make sure I have this right. Let's say that as a result of this law change, charities receive 1 billion less than they would have with the deduction. The gain in tax receipts will be about $333 million (33% of one billion).

But somehow the charities will be better off because the government will be giving them a billion, 667 million they don't have? HUH?

Are these people in the same universe of common sense?

Look, I believe in the flat tax. None the less, why would you take away deductions for people who give to charity if you want to encourage generosity and discourage greed? These people are not only socialists but they are ignorant as well.

Sorry, maybe that's redundant.

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